David Jones, the new administrator for a surgical clinic, was trying to determine how to allocate his indirect expenses. His staff was complaining that the current method of taking a percentage of...

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Extracted text: David Jones, the new administrator for a surgical clinic, was trying to determine how to allocate his indirect expenses. His staff was complaining that the current method of taking a percentage of revenues was unfair. He decided to try to allocate utilities based on square footage of each department, administration based on direct costs, and laboratory based on tests. Use the information in the chart below. Square Footage Direct Lab Tests Expenses $200,000 500,000 625,000 1,400,000 300,000 600,000 $3,375,000 Utilities Administration 2,000 Laboratory Day-op suite Cystoscopy Endoscopy 2,000 3,000 1,500 1,500 10,000 4,000 500 500 Total 5,000 62500 What are the endoscopy department's total expenses?